When we talk about fast loans, we usually refer to the loans offered by specialized credit institutions, such as Cofidis and Cetelem. But you also have to take into account loans offered by mini-credit companies, fast fintech loans (lending loans ), and crowdfunding loans ( crowdlending ). The loan shark of fast loans, therefore, must be analyzed both in fast loans from financial institutions. And in fast loans from private lenders. The lawyers and economists of Futur Legal will be happy to analyze your case if you are affected by a fast credit loan shark and file an out-of-court claim before a possible demand for a shark loan of a fast credit or credit card.
We link below the second judgment of the Supreme Court on loan sharks in credit cards, STS 149/2020 dated March 4, 2020, favorable to the interests of the consumer.
Examples of quick credits
Let’s see some examples of fast loans on the market and then assess in which cases. We may be facing a case of a loan shark of fast loans.
Quick credit from Cetelem
Banco Cetelem SAU offers personal loans from 7.18% APR. An interest rate close to 7% nominal cannot, at all, be considered usurious. However, we are talking about conditions for “normal” personal loans. To finance the purchase of a car or reform our home. Even your loan to reunify debts, from 11.46% APR to 14.82% APR, does not seem to me to have a disproportionate cost.
Where we start to find very high-interest rates is on their credit cards. An APR rate of 22.27% APR of deferred payments with a revolving card falls within the parameters to suspect that we are dealing with a usurious credit.
Cofidis Quick Credits
Neither is the “normal” loans from the Cofidis SA branch in Spain excessively expensive. Financing the purchase of a car means paying an APR interest rate between 6.12% and 11.61%. However, direct credit. Between 500 and 4,000 euros, means paying interest of 24.51% APR. Suspiciously close to the concept of a loan shark.
Credit from Credit
It is a loan from a private company (lending company), not a bank. The credit line up to 5,000 euros supposes an interest rate from a minimum. APR of 24.90% to a maximum APR of 381.28% destined to the highest risk profiles. Types that can be usurious.
Currency
Another lending company whose credits up to 5,000 euros range from 60% to 113% APR. Usurious.
Crowdlending loans
The crowdfunding of loans crowdfund lending, or P2P loans are a new form of financing and investment. That allows many small investors to agree, through a participatory financing platform. And lend together to a company or individual. As we can see in the Enfintech comparator, the interest rates are quite competitive, hovering around 7%. Therefore, at least based on public information. We did not detect loans suspected of a loan shark in this type of fintech.
Shark loan of fast credits according to the TS
The Supreme Court in its ruling 628/2015 dated 11/25/2015 considers a revolving loan granted by Banco Sygma Hispania. A branch in Spain to be usurious (it no longer operates in our country).
Characteristics of the usurious loan
The loan considered usurious by the Supreme Court had the following nature:
“Banco Sygma Mediatis revolving personal loan”, consisting of a credit agreement that allowed you to make withdrawals by phone calls or by using a card issued by Banco Sygma, up to a limit of 500,000 pesetas (3,005.06 euros), a limit that, as stated in the contract, “may be modified by Banco Sygma Hispania.” The remuneration interest rate set in the contract was 24.6% APR, and the default interest, the result of increasing the remuneration interest by 4.5 percentage points.
Taking into account the conditions of the cards at the moment, with these statistics from the Bank of Spain. The interest rates TEDR (Restricted definition effective rate). Which is equivalent to APR without including commissions, are between 20 and 21%, dangerously close to 24.6% APR.
Conditions for a credit to be usurious
The TS marks two conditions, based on what is established in article 1 of the Law of July 23, 1908, on the Repression of a loan shark, that a loan will have a user interest when “ an interest notably higher than normal money and manifestly disproportionate is stipulated with the circumstances of the case “, without it being required that, cumulatively, it is required” that it has been accepted by the borrower because of his distressing situation, inexperience or limited mental faculties. “
